Paxos receives full approval from Singapore's central bank to issue stablecoins, partners with DBS Bank

Paxos received approval from Singapore's central bank to offer certain services that will ultimately allow the firm to issue stablecoins that are compliant with the country's stablecoin framework.

Paxos' Singapore entity, Paxos Digital Singapore Pte. LTD., will be allowed to offer "digital payment token services" as a major payments institution, the stablecoin issuer said in a statement on Monday. 

“Stablecoins issued in accordance with standards set by a regulator like MAS [Monetary Authority of Singapore] – known for its rigorous regulatory standards – represent a significant step towards democratizing access to commerce and financial services," said Walter Hessert, head of strategy at Paxos. "Receiving approval from MAS is an important step for Paxos and our global enterprise partners to safely offer access to US dollars to more users around the world.”

Paxos is authorized to issue stablecoins in the U.S., United Arab Emirates and now Singapore, the firm said. So far, 19 firms engaging in cryptocurrency services or digital payment token services have the MPI license from Singapore, including Paxos, Blockchain.com, Circle and Coinbase. To obtain an MPI license, firms have to have a base capital of $250,000 Singapore dollars as well as a "permanent place of business or a registered office" in Singapore, among other criteria, according to the central bank's website. 

Paxos also announced on Monday that it was partnering with Singapore-based DBS Bank for cash management needs and to custody stablecoin reserves. 

"This partnership further expands DBS’ wide-ranging involvement across the digital asset ecosystem, of which we have been a pioneer and innovator for several years now," said Evy Theunis, head of digital assets at DBS Bank's institutional banking group. 

DBS has been active in the crypto industry for years. The bank launched a fiat-to-crypto exchange in 2020 and later partnered with decentralized gaming virtual world Sandbox to create a metaverse experience.